U.S. Entrepreneurs and Business Owners

Do you have a business in Israel and are starting to work with the U.S.?

Or are you looking to expand to U.S. customers, open an Amazon store, or set up local operations there? Before you move forward, it’s worth getting organized:
Which structure is right for you, what you need to file and when, and how to make sure everything is properly aligned between the U.S. and Israel – with minimal tax and no surprises.

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Starting a business in the U.S.? Here’s what the process looks like

Mapping your activity, selecting the entity type, choosing the state of incorporation, tax planning and optimization between U.S. and Israeli taxation, and reviewing reporting obligations across the relevant jurisdictions.

Registering the entity in the U.S., obtaining an EIN, assistance with BOI filings, and assistance with W-8/W-9 forms for customers and vendors.

Preparing and filing the relevant federal and state returns, including withholding tax and information forms.

Preparing and filing returns with the Israel Tax Authority while aligning and reconciling with the U.S. return, leveraging treaty benefits to prevent double taxation, claiming foreign tax credits, classifying the entity for Israeli tax purposes, and preventing double taxation.

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Planning or running business operations in the U.S.?

Thinking about opening an Amazon store or expanding your business to a U.S. audience?
These are just a few of the questions we get every day:

Do I need to set up a company if I have a business in the U.S.?

You can operate in the U.S. directly as a sole proprietor or through an entity you establish (partnership, LLC, Inc., C-Corp, S-Corp, and similar). The right approach depends heavily on the nature of your activity, and in any case it should be reviewed on a case-by-case basis, as there are many considerations involved in this decision. Before starting U.S. operations, it is very important to plan the tax aspects in advance and make sure you are operating in a tax-efficient manner.

The choice of entity depends on various factors, such as the type of activity you plan to conduct, your expected profits/losses, your tax profile, and more. It is recommended to review each case individually.

In general, if you own an LLC in the U.S., you are required to file with the U.S. tax authorities (the IRS). However, the filing requirement depends on various factors, such as whether the entity is treated as “transparent” (taxed as a partnership for U.S. tax purposes) or “non-transparent” (taxed as a corporation for U.S. tax purposes), whether the entity had income during the year, and other considerations.

If you have a U.S. filing obligation, you must ensure that you have a U.S. taxpayer identification number. Generally, U.S. citizens and Green Card holders use an SSN (Social Security Number), while Israeli residents who are not U.S. citizens or Green Card holders must obtain an ITIN (Individual Taxpayer Identification Number). The filing method depends on the nature of the activity, how the business is conducted, and other factors.

Whether state tax applies to your U.S. business activity depends on several factors, including how you operate, the law of the relevant state, the scope and nature of your activities in that state (for example, whether you have an office, employees, or a warehouse there), and how you conduct business in the U.S. (for example, directly or through a U.S. company). It is recommended to review your specific facts in light of the laws of the relevant state.

In general, whether you are required to collect or pay sales tax in a particular state depends on the extent of your business’s presence in that state. “Presence” may include physical presence such as an office, employees, or a warehouse, but also sales into that state above a certain threshold. The relevant rules and thresholds vary by state and depend on how your business operates.

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How can we help at Tax Link?

  • Comprehensive advice on your U.S. operating model and structure: mapping your activities, selecting the entity structure and state, and initial tax planning – all while optimizing between U.S. and Israeli taxation.
  • Formation and ongoing operations: registering the entity in the U.S., obtaining an EIN, assistance with BOI filings, and assistance with W-8/W-9 forms for customers and vendors.
  • U.S. compliance and filings: preparing and filing the relevant federal and state returns, including withholding tax and information returns.
  • Coordination with Israel: treaty coordination and foreign tax credits, Israeli entity classification, and avoiding double taxation.
  • Organization, deadlines, and transparency: timeline management, structured document collection, ongoing status updates, and fair pricing.

Need guidance?

Click here and we’ll get back to you for a short, no-obligation call.

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Why Choose Tax-Link?

  • One Stop Shop – US and Israeli tax reporting under one roof – no back-and-forth coordination between an Israeli CPA and a US CPA. End-to-end handling, all in one firm.

  • A personal approach – High-level professionalism alongside clear, pleasant communication. You always know exactly where things stand.

  • A clear process with minimal involvement on your part – Smart document collection, an organized workflow, and full end-to-end process management by our team.

  • Transparency and Fair Pricing – Real-time status updates, clear deadlines, and no surprises.

 

Tax-Link – one language, one team, one point of accountability, from the first step through completion.

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